In the latest round of institutional reforms by the State Council, the content of the energy program was restructured under the supervision of the State Energy Administration. To enhance energy management, the National Energy Administration, which operates under the Development and Reform Commission, was established. This reform has yielded positive outcomes. The plan aims to further advance energy development and reform while strengthening oversight and management. As part of this initiative, the responsibilities of the current National Energy Administration and the Electricity Regulatory Commission (SERC) will be merged, and a new National Energy Administration will be re-established. Its primary duties include formulating and implementing energy strategies, plans, and policies, as well as proposing energy system reforms and overseeing energy regulation. Following this restructuring, the SERC will no longer exist, and the National Energy Administration will continue to be managed by the Development and Reform Commission.
The Development and Reform Commission will focus on coordinating national economic and social development planning and energy planning. In addition, the plan also proposes the reorganization of the State Oceanic Administration, along with its China Sea Superintendent, the Border Police of the Ministry of Public Security, the Chinese Fishery Administration of the Ministry of Agriculture, and the Customs Department. These entities will be integrated into a newly reorganized National Oceanic Administration, which will be under the jurisdiction of the Ministry of Land and Resources. Its key responsibilities involve developing marine plans, enforcing maritime rights, supervising sea area use, and protecting the marine environment. The State Oceanic Administration will carry out maritime enforcement under the name of the China National Marine Police and will receive business guidance from the Ministry of Public Security.
The institutional reform and functional transformation plan of the State Council has officially been released. It emphasizes the need for stronger energy supply and security, as well as the adaptation of energy regulation to market-oriented development. According to members of the Chinese People's Political Consultative Conference (CPPCC), the integration of energy sectors—such as electricity, oil, and gas—into a unified regulatory body is expected to better support the implementation of national energy strategies.
Lu Qizhou, a CPPCC member and general manager of China Power Investment Corporation, pointed out that the original purpose of establishing the SERC was to supervise the electricity market. However, due to the lack of a fully developed market, the functions of the SERC have become unclear over time. The current adjustment brings electricity, oil, and gas under one regulatory framework, making it more efficient to implement broader energy policies.
In 2002, the State Council initiated a major reform of the power system, separating power generation from the grid. This marked a shift from a centralized management system to a more competitive structure, involving companies such as the State Grid Corporation, China Southern Power Grid Corporation, and five major power generation groups.
Wang Xiaomin, a CPPCC member and former vice chairman of the State Electricity Regulatory Commission, noted that both the former Ministry of Power and the Ministry of Energy have played correct roles in line with market economy principles. The current power market has seen good results, including increased competition and reduced construction costs.
However, Wang Yimin believes that the current energy regulatory system still needs further alignment with marketization. Several challenges remain to be studied in depth. Moving forward, the goal is to rationalize the energy system and improve coordination with national macro-management departments. He emphasized that reform is an ongoing process, not a one-time event. Institutional adjustments essentially revolve around function transformation, and the core issue lies in how these functions are redefined and optimized over time.
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